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Ratio Analysis Bhp Billiton

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Ratio Analysis Bhp Billiton
BHP Billiton
Financial Analysis Report
This report analyses the financial performance of BHP Billiton, a diversified natural resources group, for a potential investor. It uses the financial ratios to analyse the company’s profitability, liquidity, efficiency and investment potential.

Qasim

1 Introduction 1

2 Peer companies Selected 1

2.1 Vedanta Resources PLC 1
2.2 Vale Limited 1

3 Financial Analysis of BHP Billiton 2

4 Financial Analysis of Peer Companies 3

5 Interpretation of Analysis 4
5.1 Profitability 4
5.2 Solvency & Liquidity 4
5.3 Efficiency 5
5.4 Investors 6

6 References 7

7 APPENDIX- I 8

8 APPENDIX II 11

Introduction

This report analyses the financial performance of BHP Billiton for a potential investor. The report uses the financial ratios to analyse the company and its profitability, liquidity, efficiency and investment potential. BHP Billiton is a diversified natural resources group whose main activities include mineral exploration and production. The main areas of focus for the group include oil and gas, iron Ore, Base Metal, aluminium and other mineral. This analysis looks at the company’s financial performance and its future ability to generate revenues. The company has faced problems with a volatile world economy which has impacted performance. The company continues to invest in high return growth projects. The analysis examines the feasibility of the present investment by the company and their ability to generate revenues in the future.
Peer companies Selected
Vedanta Resources PLC
Vedanta Resources PLC is a London based globally diversified natural resources group committed to sustainable development, supporting local communities and contributing to the economies of the areas where it operates. The assets and operations of Vedanta Resources plc are located in the high growth markets of India, Zambia, Namibia, South Africa, Liberia, Ireland and Australia. They are primarily engaged in extraction
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